ED issues fresh show cause notice to BCCI over IPL-2 contracts

ED sources said investigation has revealed that the Foreign Exchange Management Act (FEMA) contraventions were committed by BCCI in accepting deposits of Rs 20 crore from Emerging Media Sporting Holdings Ltd, UK (bidding for IPL franchise Rajasthan Royals) and Rs 40 crore from MSM Satellite (Singapore) Pvt Ltd (bidding for TV broadcast contract).

The notices have been issued to former IPL commissioner Lalit Modi, BCCI president N Srinivasan, former BCCI secretary Niranjan Shah and the HDFC Bank.

In addition to imposition of penalties, the show cause notice also proposes confiscation of these deposits of Rs 60 crore.

IPL-2 was held in South Africa after the venue was shifted from India.

There have been allegations of ill-gotten money flowing into the T-20 tournament from foreign tax heavens.

Earlier, Minister of State for Finance S S Palanimanickam had told the Lok Sabha last Wednesday that ED had issued 12 show cause notices to BCCI and its officials for contraventions of foreign exchange laws involving Rs 1423.20 crore.

He had said 11 show cause notices involving an amount of Rs 1317.20 crore in the year 2011, and one notice involving Rs 106 crore in the 2012 had been issued by the anti-money laundering agency in this regard.